Second home interest RatesOther house interest
Main domicile, second home or object of investments? If you are applying for a mortgages, you will be asked how your real estate will be used. We have described how each booking method is described and how it can impact the ultimate costs of your mortgages. Do you plan to bring in all your things and call this new place "home"?
lf so, you will have a main apartment. First homes are subject to the smallest deposit (up to 3%) and the cheapest interest rate. You' re gonna have to stay in the house most of the year. Ensure that the house is at a suitable working distance from your workplace.
They must stay in the house within 60 workingdays of closure. In case you already own the house and are funding yourself, you must be able to provide proof of your place of abode by means of documents (e.g. your taxes return, state identity card). TIP: If you want to generate rent from your new home, you should look at real estate with multiple units.
So long as you reside in one of the entities, creditors can class the real estate as your principal domicile and provide lower interest rates. Are you looking for a holiday apartment on the shore or in the mountain? You' ll probably get what a lender would consider a second home.
Remember that a "second home" is dependent on how you occupy the home, not on whether it is actually the second home you have ever purchased or owned. Second-home apartments have similar interest rates to first-home apartments, but a higher deposit of 10% is required. There are also reserves required, i.e. you need cash that can be used to make a certain number of months' purchases in the event of an emergeny.
If your real estate fulfils these requirements, it is deemed to be a second home: As a rule, the house must be at least 50 nautical miles from your main home. This house cannot be the object of a lease, timeshare or real estate contract. TIP: If you will not be staying full-time in your new home, remember that the situation of the house may influence whether it is a second home or not.
Choosing a home that is too near to your main home may expose you to higher interest rates on an asset. Would you like to buy an extra real estate for a new revenue stream? That'?d be real estate for investments. As a rule, real estate investments have the highest interest rates and down payments for all kinds of real estate.
Reservation requirement also applies to real estate held for income purposes. Their real estate is regarded as an object of investments, if: Located within 50 mile of your main home. They are planning to collect the rental from the real estate. However, if so, you may need to present a rental contract confirming that the home is rented by a lessee.
TIP: Note that when you purchase an asset you may not be able to incorporate your prospective rent from the asset into your mortgages for it. You are not sure how your real estate will be classed? Arrange a free appointment with one of our experienced credit advisors.